• Where Is Advertising Going? Into 'Stitials

    It's high time to shift our focus from the "avails" in media content to those in consumers' lives - that is, where, when, and how people might be receptive to relevant commercial messages.
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  • Working in the Gray Zone

    Supervisors often turn a blind eye when employees use company resources and time to work on personal projects. They realize that stamping out such behavior may do more harm than good.
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  • Don't Just Capture Knowledge-Put It to Work

    By engaging employees in the systematic, facilitated collection and circulation of organizational knowledge, you can make sure innovations reach those who need them. Intel Solution Services offers a case in point.
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  • The Best Advice I Ever Got: William P. Lauder

    The president and CEO of Estee Lauder Companies learned the importance of time management back when he worked under U.S. treasury secretary Donald Regan. The lesson sounds simple, but it has shaped his approach to strategy and his philosophy on motivating people.
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  • The Blue-Collar Green-Building Boom

    Most of the green buildings constructed over the past decade in the United States have been white-collar workplaces such as office buildings and schools. The greening of blue-collar workplaces, from warehouses to factories, has lagged far behind - but that's beginning to change.
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  • To Get Value from a Merger, Grow Sales

    After a merger, managers should strengthen sales and marketing before cutting costs. That's because revenue growth generates long-term shareholder value.
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  • IT Governance at Oxford Industries: Information Architecture for Financial Data

    At the end of 2005, Atlanta-based Oxford Industries was closing on its third major acquisition in as many years. Two-and-a-half years earlier, Oxford had acquired the Tommy Bahama brand in Seattle, and one year later, it had purchased London-based Ben Sherman. As Oxford's CIO, John Baumgartner has managed over the last three years to provide systems support to establish visibility into the day-to-day financial activities of the legacy company and the newly acquired operating companies, while at the same time minimizing any negative impacts on the profitability of the newly acquired companies through business process and system changes. As additional acquisitions are planned, however, balancing these two objectives is becoming more and more difficult. The degree to which the acquired organizations should function independently or be brought under one corporate information system is becoming an increasingly pressing issue.
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  • Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B)

    This is the second of a two-case series. Cirque du Soleil very successfully entered a structurally unattractive circus industry. It was able to reinvent the industry and created a new market space by challenging the conventional assumptions about how to compete. It value innovated by shifting the buyer group from children (end-users of the traditional circus) to adults (purchasers of the traditional circus), drawing upon the distinctive strengths of other alternative industries, such as the theatre, Broadway shows and the opera, to offer a totally new set of utilities to more mature and higher spending customers. **ecch European Case Awards Category Winner 2008**
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  • Service Innovation Myopia? A new Recipe for Client-Provider Value Creation

    Traditional management thinking addresses either the service provider's or the client's individual competences and competitive advantage in service innovation. This is myopic in the extreme; value creation should be based on the simultaneous recognition of the interests and competencies of both parties. This article examines the service innovation strategies in the ICT field from the perspective of the resource-based view of the firm and the management competencies involved. First, the characteristics of three main types of service innovations (established service, incremental service innovation, and radical service innovation) are outlined, as these can be shown to require different value creation approaches. Second, a service strategy matrix is constructed illustrating the client-driven, provider-driven, and collaborative service innovation strategies. The article provides a recipe for managing the service co-creation modes, with guidelines given on how to succeed through collaborative capabilities and culture, as well as appropriate business models.
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  • Service-Logic Innovations: How to Innovate Customers, Not Products

    Service innovations reportedly involve innovating intangible products, but this article argues for a more radical service-logic perspective that challenges the traditional, attribute-based view of innovation. Rather than innovating products and services, the focus here shifts toward innovating customers' value co-creation roles. This article presents a case-based managerial framework that reveals how service-logic innovations change the customer's role as a buyer, payer, or user and shows how firms can innovate through smart offerings, different value integration approaches, and reconfigured value constellations.
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  • Service Blueprinting: A Practical Technique for Service Innovation

    With the global focus on service-led growth has come increased need for practical techniques for service innovation. Services are fluid, dynamic, experiential, and frequently co-produced in real time by customers, employees, and technology, often with few static physical properties. However, most product innovation approaches focus on the design of relatively static products with physical properties. Thus, many of the invention and prototype design techniques used for physical goods and technologies do not work well for human and interactive services. This article describes one technique-service blueprinting-that has proven useful for service innovation. Service blueprinting is securely grounded in the customer's experience and it allows the clear visualization of dynamic service processes. The technique is described in detail including real case examples that illustrate the value and breadth of its applications.
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  • The Dynamics of Strategic Agility: Nokia's Rollercoaster Experience

    This article proposes a framework to address a central conundrum in strategic management: How can firms transcend the trade-off between the momentum that results from the strong strategic commitments needed to gain industry leadership with the need for strategic agility in the face of strategic discontinuities? The article develops an analysis of the meta-capabilities underlying strategic agility, which is clustered around strategic sensitivity (both the sharpness of perception and the intensity of awareness and attention), resource fluidity (the internal capability to reconfigure business systems and redeploy resources rapidly), and leadership unity (the ability of the top team to make bold decisions fast, without getting bogged down in "win-lose" politics at the top). Based on an in-depth study of Nokia's evolution over the past twenty years, this article shows how these three meta-capabilities interact over time and proposes a framework to enable a firm to maintain and regain strategic agility as it matures.
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  • Cutting the Strategy Diamond in High-Technology Ventures

    This article presents the "strategy diamond," which extends received strategic management theory by integrating the positional view and the resource-based view, the formulation and implementation of strategy, and the firm's internal selection environment into one relatively simple conceptual framework of dynamic forces driving firm evolution. The article suggests that this framework can be helpful in stimulating further research to drive towards a dynamic theory of strategy. The strategy diamond facilitates understanding the dynamic interplays between strategy logic and strategy execution, and its jargon-free "natural language form" may facilitate strategic conversations and help inculcate a strategic mentality into organizations. This framework has been useful for senior executives in two major corporations. Four case studies highlight how the framework may help instill strategic discipline in high-technology ventures operating in extremely dynamic environments.
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  • Fish: Here's the Catch

    In January 2003, Dr. David Acheson, the new Chief Medical Officer of Health of the FDA was charged by his boss with working jointly with the EPA to develop a comprehensive set of federal guidelines for fish consumption for all Americans. The guidelines needed to balance the benefits of fish consumption with the potential risks of exposure to mercury, dioxin, and PCBs - exposures of particular concern to pregnant women and young children. The case includes an additional document entitled Mercury and Fish Consumption that provides background material and reviews of studies of mercury exposure.
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  • Attacking Heart Disease in Suffolk County

    "Suffolk County is experiencing elevated cardiovascular disease mortality relative to New York State," explained Dr. Humayun Chaudhry, Commissioner for the Department of Health Services of Suffolk County. Given the general affluence of the area, he finds the CVD mortality rates "a paradoxical situation. We need to determine strategies to address this high priority health issue for our county."
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  • Tom Sawyer and the Construction of Value

    The authors argue that consumer valuations of goods and services are a lot more arbitrary than we may think, and are affected by several 'arbitrary' components and biases. They describe the phenomenon of 'Tom's Law', whereby Mark Twain's Tom Sawyer discovered a great law of human behavior: that in order to make a person covet a thing, it is only necessary to make the thing difficult to attain. They introduce the concept of 'coherent arbitrariness' and show how arbitrariness is enhanced by ambiguity in a good or bad experience.
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  • The New Consumerism: Inequality, Emulation and the Erosion of Well-Being

    The top tier of society's income and wealth distribution has become a widespread emulative target, and there are implications for consumer satisfaction and collective well-being. The author describes the roots of the problem and how three shifts--in wealth and income distributions, of women into corporate hierarchies, and of the growing importance of electronic media--have led to an escalation of North Americans' consumer aspirations. She then shows how quality of life has been affected in at least three important ways and ponders a sustainable way forward.
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  • The Effects of Partitioning on Consumption

    The authors describe their research, which found that when a quantity of a given resource - such as food, money, or cigarettes - is physically divided into smaller quantities, it reduces both the total quantity consumed and the speed of consumption. For marketers, these results suggest that simple forms of packaging have the ability to create dramatic variations in consumption. For consumers, the message is simple - for consumption that you want to control (but that is tempting), the simple act of partitioning the resource will help curb consumption.
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  • Social Innovation and Sustainable Development as Drivers of Growth

    Unilever CEO Patrick Cescau describes how finding the 'sweet spot' between the needs of consumers, society and our planet is a complex task, but shows that it can be a significant source of competitive advantage for those who do it well. Cescau provides specific examples of how Unilever's presence in the emerging economies of Asia and Africa is contributing to the global development agenda, describing in detail the new business models his firm has created for products that meet social needs.
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  • Hedonomics in Consumer Behaviour

    To maximize happiness, consumers must accurately predict the emotional consequences of their options and make product and service choices based on those predictions. The authors describe concepts including 'hedonic editing' and the role of multiple choice, and discuss eight common consumption biases that can decrease consumer happiness. In the end they show that 'hedonomics' challenges two commonly-held assumptions in economics: that maximizing a desired external stimuli equals maximizing consumer happiness; and that what consumers choose reflects what makes them happy.
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